With the growing concerns about environmental pollution and depletion of fossil fuels, governments across the world are promoting electric vehicles. Electric vehicles require an efficient cooling system to regulate the temperature of high-powered lithium-ion batteries. Electric vehicle battery coolant plays a vital role in ensuring optimum performance of batteries by dissipating excess heat and maintaining optimal operating temperature. It helps extend battery life and improve battery performance.
The electric vehicle battery coolant market is estimated to be valued at USD 2.12 Bn in 2024 and is expected to reach USD 2.74 Bn by 2031, growing at a compound annual growth rate (CAGR) of 3.8% from 2024 to 2031.
Key players operating in the electric vehicle battery coolant market are The 3M Company, Prestone Products Corporation, Hangsterfer’s Laboratories, Inc., Recochem Inc., Total, MITSUI CHEMICALS, KOST USA, UTTAM, SINOPEC, and CCI CORPORATION.
Growing environmental concerns and stringent emission norms are driving demand for electric vehicles worldwide. This is increasing the demand for efficient battery thermal management systems and Electric Vehicle Battery Coolant Market.
Advancements in battery technology and materials are enabling greater energy density and power in lithium-ion batteries. At the same time, improved thermal management techniques allow batteries to operate at higher temperatures without deterioration. This is boosting the development of new and innovative electric vehicle battery coolants.
Market Trends
1. Growing preference for natural and organic coolants: With increasing emphasis on sustainability, manufacturers are developing organic acid-based and bio-based coolants made from plant extracts, amino-acids etc. These are more environment-friendly.
2. Development of phase change materials (PCMs): PCMs exploit the high latent heat of evaporation or fusion to regulate temperature. Their incorporation in electric vehicle battery coolants further enhances cooling efficiency.
Market Opportunities
1. Rising demand in commercial electric vehicles: Increasing electrification of commercial fleets and expansion of e-commerce will spur demand for electric trucks, vans, etc. This opens new growth areas for battery coolant providers.
2. Growing EV markets in emerging nations: Countries like China, India are incentivizing electric mobility. As their nascent EV industries take off, sizable opportunities will arise for local battery coolant manufacturing and supply chains.
Impact of COVID-19 on Electric Vehicle Battery Coolant Market Growth:
The COVID-19 pandemic has significantly impacted the growth of the electric vehicle battery coolant market. During the initial months of the pandemic in 2020, several automotive manufacturers including major EV manufacturers had to pause or reduce their production activities due to lockdowns imposed across various regions. This led to a substantial decline in electric vehicle sales globally during this period. With reduced vehicular production and sales, the demand for electric vehicle battery coolants also witnessed a downfall. However, government subsidies and initiatives in several nations to promote clean mobility helped the market to recover at a steady pace post lockdowns.
The pandemic also disrupted the supply chains of various raw materials and components required for manufacturing electric vehicle battery coolants. This posed challenges for market players to meet the pre-COVID demand levels. With economic activities now picking up pace, the market is estimated to grow at a moderate rate through 2022. Market players are focusing on strengthening their supply networks and exploring new partnerships to cater to the future demand. Researchers are also working on developing advanced and more sustainable coolant formulations to enhance battery performance and lifetime.
Geographical Regions with Highest Electric Vehicle Battery Coolant Market Value:
The electric vehicle battery coolant market in Asia Pacific region currently accounts for the largest value share globally. This is majorly attributed to the large production and sales of EVs concentrated in China. China dominates the global EV battery coolant consumption given its prominence as the world's largest EV manufacturer and market. Other major Asian markets including Japan and South Korea are also top EV producers contributing significantly to the regional market value. Government incentives and investments in building charging infrastructure in countries like China, Japan, South Korea, India etc. have propelled the regional EV adoption rates over the past few years.
Fastest Growing Region in Electric Vehicle Battery Coolant Market:
The electric vehicle battery coolant market in Europe is expected to expand at the fastest rate during the forecast period. Several European nations have ambitious phase-out targets for petrol and diesel cars to promote electrification of transportation. Countries like Germany, France, Norway, Netherlands, Sweden etc. offer lucrative purchase subsidies for EVs encouraging their sales in the region. Additionally, the presence of leading global automakers and component suppliers in Europe is supporting the regional market growth. Policy push for greener transportation along with investments in charging infrastructure are some key factors estimated to drive the European market for EV battery coolants in the coming years.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)